Chinese investors looking for any and all safe havens out of Yuan as gold imports soar to highest level since 2013
Chinese investors looking for any and all safe havens out of Yuan as gold imports soar to highest level since 2013 by Ken Schortgen, Jr. – The Daily Economist
While Chinese regulators attempt to tweak Bitcoin and other cryptocurrency use within its borders, the virtual money is not the only save haven investors are seeking to move into as a way to get out of the Yuan. In fact, 2017 has once again seen a surge in gold imports and purchases after a slight slowdown last year.
China, the world’s biggest gold market, may boost imports through Hong Kong by about half this year as local investors seek to protect their wealth from currency risks, a slowing property market and volatile stocks, according to the Chinese Gold & Silver Exchange Society.
Mainland China is set to import about 1,000 metric tons from the territory in 2017, said Haywood Cheung, president of the century-old exchange in Hong Kong which trades physical gold and silver. That compares with net purchases of 647 tons last year and would be the biggest since 2013, data from the Hong Kong Census and Statistics Department compiled by Bloomberg show. – Bloomberg
With the ongoing frenzy in the cryptocurrencies encompassing not just China, but all of Asia, gold is looking like a under-valued asset in comparison to Bitcoin which is now more than twice the price of an ounce of gold. And couple this with geo-political chaos in the Middle East and in Britain over the past month, and it appears more and more that trust in sovereign currencies are losing favor as the shift to alternative wealth protections outside the Yuan had become a high priority.